The Australian pound versus the New Zealand dollar currency pair hit an important area, 1.0826. Are the bears just around the corner?
From the 1.1043 high, the price entered into a descending trend that lasted until the 1.0418 low. As the low marks the head of a head and shoulders chart pattern (with 1.0153 being the right-side shoulder), the bulls seized the opportunity to mark an appreciation.
As a result, the price climbed to the 1.0707 area, where, supported by the 1.0631 intermediary level, a consolidation phase took shape. After 1.0707 ceded, the bulls pushed the price with all their force, thus arriving at the 1.0826 firm area.
The arrival was noted by the 1.0842 high, printed just above the region of 1.0826. From here onward, one possible scenario is yet another consolidation phase, this time overhead 1.0826.
A different outcome is a retracement that validates the previous high of 1.0761 as support. Both scenarios, as they are bullish, target the 1.0895 intermediary level and the main zone of 1.0983.
Still, if any oscillation above 1.0826 ends up being a false piercing, then 1.0631 could the next bearish stop.
After the climb to 1.0714, the price rotated and fell to 1.0627. From there, it pushed up to 1.0721, unfolding a short-lived consolidation phase that validated the support of 1.0681.
From 1.0681, a sustained advancement toward the north started, etching — as of writing — the high of 1.0842, just over 1.0820.
If 1.0820 proves to be a support level, 1.0866 is the next bullish objective. However, 1.0820 turning resistance may facilitate the formation of a consolidative phase supported by 1.0778.
Only if 1.0778 gives way, the fall may extend to the next area, 1.0741.
Levels to keep an eye on:
D1: 1.0826 1.0895 1.0983 1.0631 and the 1.0761 high
H4: 1.0820 1.0866 1.0778 1.0741
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